The Bank of Ghana successfully concludes pilot project for digital certificates in international trade
The Bank of Ghana has completed a pilot project demonstrating the use of digital certificates for international trade and cross-border transactions based on CBDC.
This initiative, known as the “Desft” project, is a joint effort with the monetary authority of Singapore to promote the participation of small and medium enterprises (SMEs) from developing countries in global markets.
Maxwell Opoku-Afari of the Bank of Ghana emphasized that the project aims to alleviate the challenges faced by SMEs, such as establishing trust.
International Partnerships and Cross-Border Payments Management
A pilot project is focusing on trade between Ghana and Singapore, utilizing blockchain technology, stablecoins, and digital currencies like the Ghanaian eCedi.
The proof of concept successfully demonstrates a direct linkage model that eliminates intermediaries and reduces transaction costs. Giesecke+Devrient provided the necessary technology, while Fidelity Bank supported with banking services. According to Giesecke+Devrient, this project illustrates how CBDCs can streamline cross-border payment processes.
The Importance of International Trade for Supporting SME Growth
Small and medium-sized enterprises (SMEs) play a crucial role in the global economy, driving innovation, creating jobs, and contributing to economic growth. In order to support the growth of SMEs, it is essential to focus on international trade.
International trade allows SMEs to access new markets, expand their customer base, and increase their revenue. By exporting their products or services to other countries, SMEs can diversify their customer base and reduce their dependence on the domestic market. This not only helps SMEs to grow and thrive, but also contributes to the overall economic development of a country.
Furthermore, participating in international trade can help SMEs to improve their competitiveness and efficiency. By engaging in global markets, SMEs are forced to adapt to new regulations, technologies, and business practices, which can lead to increased productivity and innovation. This exposure to international competition can also push SMEs to improve the quality of their products and services, ultimately making them more competitive in the global marketplace.
In conclusion, international trade is essential for supporting the growth of SMEs. By opening up new opportunities, fostering innovation, and improving competitiveness, international trade can help SMEs to expand and thrive in today’s global economy.
